Negotiations For the Best Real Estate Deals

Many people do not understand that you can negotiate when you buy a house too. Just because the amount is huge or because the people opposite you look formidable, you don’t have to be scared to negotiate. In fact, most of the salesmen quote a slightly higher rate as they expect you to negotiate.

Most of the new high rise apartments have a price tag + a price for floor rise. For example, the rates currently at Khandivili (Mumbai, India) are around Rs 6000 + Rs 20-40 per floor rise. So, a house at the 10th floor would be around Rs 6200-6400 per square foot.  

Recently, I was talking to a salesman of a reputed builder, who happens to be a friend of mine, about what negotiations go on and what results. Though I knew he wouldn’t disclose all, he gave away one secret – most builders do away with the floor rise during negotiations. So, you should not worry about floor rise prices when you desire higher floors.           

Apart from this, you can also negotiate for the price per square feet. However most builders are not comfortable doing this as they feel it would lead to a falling trend or a reduced image for their company. The price is not the only thing that you can negotiate. There are heaps of other costs that you will incur relating to your house and you can try your hand in negotiating for them too. For example, 

i)   A reduction in the price of the parking that you purchase

ii)  A reduced booking fee

iii)  A reduced cancellation fee

iv)  A request to bear the stamp duty and registration fee. (Many resale dealers accept this !)

v)  If your builder is an interior decorator/ has experts on his payroll, you can negotiate and get him to make modular kitchens/ bedroom cupboards etc. for your new house. My brother-in law has got himself such a deal for his new house in Chennai.

So, don’t limit yourself to negotiating only for the price of the house. If things don’t work well in that dimension, try the other ones I have listed above.

Do you have anything more to add to the list that has helped in your real estate negotiations?